Nkomazi Local Municipality 20 - Co-operative Governance and ...

13. KPA 4: FINANCIAL VIABILITYStrategic Objective:To enhance sound, viable and legal compliant financial managementDevelopment of annual and medium term outlook on revenue and expenditure plans and targetsReduced dependancy on grant transfers13.1. Financial Management SystemNkomazi Local Municipality uses E-venus as a financial management system. Transactions are captured daily by Nkomazi staff to thesystem and the accounting entries are supported by appropriate documentation. The transactions are captured into a vote number ofthe relevant department and cost centre (e.g. Infrastructure & Development – Electricity Supply). The financial system has budgetarycontrols in effect as comparison of the budget and actual expenditure is done on a daily to monthly basis. The financial system canproduce various reports including the general ledger and the trial balance. The E-venus system prohibits transactions to be processedin vote numbers that does not have budget. Only the senior manager can override the transactions processed in vote numbers thatdoes not have sufficient budget.Nkomazi Local Municipality uses CaseWare to prepare financial statements. The municipality export the trial balance from E-venussystem and import it into the CaseWare for preparation of financial statements. CaseWare produces a full set of up to date GRAPcompliant financial statements for Municipalities. CaseWare reduces the risk of errors and discrepancies allied with using immensespreadsheets as built-in validation immediately brings any discrepancies to your attention.13.2. Financial Management SystemFunctionality of the financial management systemSome of the reporting functionality that E-venus financial system has is as follows; GG580 for overspent accounts GG590 for Budgets and balancesGS560 for Posting register (TrialBalance)GS630 for Transactions per period (General Ledger)E-venus financial system uses GJ015 for capturing current year journals and GJ051 for capturing Audit journals.Enquiries on the E-venus financial system can be done using function GO040 for financial information (Summary anddetail). E-venus financial system also uses the following functions for daily processing; HI110 for capturing orders HI210 for capturing delivery notes HI310 for capturing invoices HI720 for capturing sundry paymentsChallenges encountered using the system No procedures and training to revenue staff for month end balancing and processing Receipts numbers are not printing on accounts Not all accounts are printing Revenue staff still struggling to do registration of properties and processing of journals on the system due toinadequate training Manual for consolidation of new properties is not user friendly Sundry payment captured only reflect on the general ledger when the payment is done on the system of which isnot in line with accrual basis of accounting.Evidence of billing systemNkomazi Local Municipality uses E-venus as a financial management system to bill its consumers. The followingfunctions are used to bill consumers. BP404 for printing of meter book before meter readings takes place BG205 for capturing of meter readings BP421 for printing of exception report and deviations on readings BK200 for updating of all receipts BJ for updating of all journals BF300 for updating of all interim valuationsNKLM Integrated Development Plan 2012_2013 79